TaxTMI 
TaxTMI 
2010 (1) TMI 40
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....strial Research (CSIR) came together to form INSA. Most of these scientists were either the holders of prominent offices in Government/semi-Government bodies like CSIR, Planning Commission, Indian Agricultural Research Institute, Bhabha Atomic Research Centre, Central Drug Research Institute, Indian Council of Medical Sciences, National Institute of Oceanography or the Professors in prominent Universities like Universities of Delhi, Rajasthan, Calcutta, Punjab, etc. Certain scientists were retired persons, who had held high positions in such institutions/bodies of prominence were also included. Dr. Atma Ram, Director, CSIR was the first President and renowned scientist M.S. Swaminathan was the first Secretary, when the original name, Nation....
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.... recognized Scientific and Industrial Research Organization (SIRO) by the Government in respect of the year in question as well as later years. 2. Section 35 of the Act allows certain deductions in respect of expenditure on scientific research. Clause(ii) of sub-section (1) thereof, with which we are concerned, permits deduction of an amount equal to one and one-fourth times of any sum paid to scientific research institution, which reads as under: "(ii) an amount equal to one and one-fourth times of any sum paid to a scientific research association which has as its object the undertaking of scientific research or to a university, college or other institution to be used for scientific research: Provided that such university, college or....
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....Academy was approved u/s.35(i)(ii) of Income Tax Act under category "Association" from 01.04.1992 to 31.03.1995 as per notification issued by Department of Revenue, Min. of Finance. 6. Further renewed from 01.04.1995 to 31.03.1996, 01.04.1996 to 31.03.1999, 01.04.1999 to 31.003.2000, and 01.04.2000 to 31.03.2003 under category "Association"." 3. Once an approval is granted as scientific association to an institute, such an institute becomes entitled to avail tax exemption under Section 10(21) of the Act, in the following terms: "10. Incomes not included in total income.-In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included - (21) any income of....
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....n it was partly engaged in research activities, and not "Scientific Research Association", benefit of exemption under Section 10(21) of the Act would not be available. 5. Since the last approval was coming to end of 31st March, 2003, the INSA again made an application dated 14.01.2003 to the Director, Income Tax (Exemptions) seeking renewal of the approval from 01.04.2003 to 31.03.2008. This approval was granted after vigorous and constant follow-up for almost three and half years with effect from 01.04.2003 vide Notification dated 28.03.2007. However, this time, this approval was given to the INSA under the category of "other institutions". Due to change in category from "Scientific Research Association" to "other institutions", Income ....
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....icable only to "Scientific Research Association" and not to the assessee notified under the category of „Other Institutions‟." 7. Notwithstanding this specific plea, the Tribunal while dismissing the appeal of the Revenue did not even advert to this plea and summarily rejected the appeal again relying upon the Notification dated 28.03.2007 in the following words: "4. The AO did not treat assessee as Scientific Research Association for the purposes of sec. 35 (1) (ii) which is the pre-requisite for claim of exemption u/s 10(21) of I.T. Act, 1961. The AO did not grant such exemption on the ground that the certificate earlier granted to the assessee was not renewed for the year under consideration. Ld. CIT(A) had held that the as....